Compounding, without the cliché
Returns earning returns. Growth is slow at first and accelerates as the base grows. It is why the start date matters more than the contribution amount, and why the last decade of a long plan produces more than the first two combined.
What it means
Returns earning returns. Growth is slow at first and accelerates as the base grows.
Why it matters to a household
It is why the start date matters more than the contribution amount, and why the last decade of a long plan produces more than the first two combined.
Where it trips people up
Interrupting it. Withdrawing partway through resets the base, and the cost is invisible because it is a future that simply does not happen.
In an Indian household
It works in reverse on debt: a credit card balance compounds against you at a rate no investment reliably matches.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
Compounding, without the cliché
Returns earning returns. Growth is slow at first and accelerates as the base grows.
Why does it matter?
It is why the start date matters more than the contribution amount, and why the last decade of a long plan produces more than the first two combined.
What do people usually get wrong?
Interrupting it. Withdrawing partway through resets the base, and the cost is invisible because it is a future that simply does not happen.
Is there anything India-specific?
It works in reverse on debt: a credit card balance compounds against you at a rate no investment reliably matches.